As the International Maritime Organisation (IMO) prepares for a decision on its delayed Net-Zero Framework, the industry is forging ahead with new sustainable solutions and research partnerships that support decarbonisation.
ndustry bodies such as Maritime Industry Australia have expressed disappointment at IMO’s delayed vote, but see the opportunity to refine the framework, eliminate areas of uncertainty, and improve the eventual regime.
Global law firm Ashurst explained that in the face of regulatory uncertainty and market developments, the approach of industry players should be data-driven, flexible, strategic, and collaborative.
Ashurst said: “Regional schemes, such as the EU emissions trading scheme (ETS) and the impending UK ETS, have more stringent requirements than those proposed by the IMO.
“Regional schemes may be affirmed, and new schemes emerge, rather than all such schemes being under pressure to yield to an IMO global scheme.
“Owners still need to weigh the costs and benefits of retrofitting existing vessels and of investing in newbuilds designed for low-carbon operation.
“These equations are nuanced according to ships’ trading patterns – discerning price elasticity in freight markets has been complicated as a result of geopolitical trade uncertainty.”
Ashurst also highlighted that the compliance and penalty history of vessels would still become a factor in asset valuation and due diligence, and emphasised the need for robust scenario modelling, investment in new technologies, and close engagement with supply chain partners.
The law firm identified three main scenarios for the future: the formal adoption of the framework at the next IMO session, further delays resulting in increased regulatory fragmentation, or the maintenance of the status quo. In this latter scenario, some shipowners may pursue their own more ambitious targets while ‘free riders’ undermine the collective impact of decarbonisation efforts.
It stated that for shipowners, investors, freight users, and fuel suppliers, their forward strategies would depend on their perspectives regarding local regulations, customer expectations, and transition risks and resilience.
A significant ongoing research project is the Australia-Singapore Low Emissions Technologies (ASLET) initiative, through which CSIRO and the Maritime and Port Authority of Singapore (MPA) are co-delivering a program supporting applied research and pilot and demonstration projects that contribute to reduced cost, increased safety and accelerated uptake of low emission technologies for maritime and port operations.
This program focuses on advancing low-emissions technologies for maritime and port operations, including hydrogen, ammonia and methanol fuels, electrification, and environmental monitoring.
CSIRO is also developing a national testbed for ammonia-fuelled energy systems at its Newcastle facility, which will support safe and scalable deployment of clean fuel technologies.
ASLET is backed by $20 million in funding from the Australian and Singaporean governments and aligns with broader bilateral government initiatives, such as the Green and Digital Shipping Corridor and Green Economy Agreement.
The Green and Digital Shipping Corridor was established in March 2024 following the signing of a memorandum of understanding by the governments of both countries.
A green methanol supply chain study for the maritime industry was completed last year, leaving four projects currently underway, two of which are in collaboration with the University of Tasmania: the development of an ammonia safety training program for maritime and port operations, and a cloud-based digital analysis tool to support the adoption and safe deployment of low-emission fuels in maritime operations.
The other two projects involve the development and demonstration of a modular hydrogen separation, purification, and compression system using liquid organic hydrocarbons, as well as a project to demonstrate the viability and benefits of a fully electric ferry designed for 50 to 100 passengers.
CSIRO Chief Executive Dr Doug Hilton said the collaboration addressed the key industry challenges faced when adopting low-emission fuels.
Dr Hilton said: “In order to reach net-zero greenhouse gas emissions from international shipping close to 2050, we need to find reliable, trusted scientific solutions for the industry.
“We need to focus on transitioning to low-emissions fuels such as ammonia and hydrogen by developing accessible technology and infrastructure at ports that support a range of vessels.
“Collaborating with MPA and also industry partners from both countries, we aim to accelerate the decarbonisation of the supply chain and help revolutionise the industry.”
Alternative fuels such as bio- and electro-fuel present big decarbonisation opportunities for the maritime industry,
particularly while the infrastructure and technology for zero carbon fuels made from renewable sources is developed.
Biofuels were the most “technologically ready” of existing alternative zero-emission fuel options, according to the Global Maritime Forum (GMF), and were currently available and being used in the form of drop-in fuels.
Biofuels are considered sustainable as the carbon dioxide they emit during combustion is regarded as potentially carbon-neutral due to the biomass’s ability to absorb carbon dioxide during growth.
Importantly, many biofuels can be used as drop-in fuels, allowing them to be mixed with traditional fuels. This offers shipowners a flexible approach to achieving carbon reductions without needing significant capital investments.
The GMF noted that there is no silver bullet for scalable zero-emission shipping fuels; however, biofuels could play a role in the long-term transition pathway. They offer the flexibility of serving as an interim solution or as a zero-emission pilot fuel for e-ammonia or e-methanol.
E-fuels, or electro-fuels, are drop-in alternative fuels typically produced using captured carbon and hydrogen derived from renewable electricity sources, such as wind, solar, and nuclear energy.
Berit Hinnemann, Head of Decarbonisation Business Development at Maersk, explained that having a decarbonisation roadmap is essential for achieving decarbonisation across the global supply chain.
She said: “[Maersk] is working on implementing efficiency measures and will transition from fossil oil and gas feedstock to renewables such as biomass and renewable electricity to reach net zero emissions by 2050.”
The company believes that both biomass feedstocks and renewable electricity will open pathways for biodiesel (advanced biofuels), methanol (bio-methanol and e-methanol), ammonia (green ammonia), and lignin fuels (in research and development stage based on lignin-alcohol blends).
Hinnemann noted that e-fuels offer the advantage of long-term scalability, while biofuels provide near-term availability, cost-effectiveness, and technological readiness.
Maersk intends to adopt both biofuels and e-fuels in its transition pathway, with biofuels allowing the company to accelerate its decarbonisation during this decade.
